Manage Workflow and the Local Optima Problem

It is a very widely held belief in business that each station in a production line should be working as hard as it can in order to maximise its efficiency. This might be a car assembly line or an accountant’s office processing tax returns using several different stages in the accounting process.  In other words, each stage is working at its Local Optimum.  Generations of Cost Accountants have encouraged this and spend endless amounts of time trying to split, for example, the cost of electricity over each work stage in the production cycle. This is probably seriously flawed thinking.  Blue Belt

 

SM5.0 Theory of Constraint (TOC) Find Remove Bottleneck

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The Theory of Constraints (TOC) is an important optimising technique that focuses on improving the throughput of work at the (usually) single bottleneck or constraint in the workflow.  

This Skills Module draws together a number of the 12Faces articles on the subject.  One research project demonstrated that 89% of improvement in a manufacturing business came from the application of TOC. Yellow Belt.  button LMS subscribe

Find Business Risk with Business DashBoard

What is Business Risk and why should you monitor with our Business DashBoards? Your Car’s Dashboard shows Progress and Warns of Looming Problems Smart Business Leaders use Business DashBoards to do the same thing 12Faces is committed to helping you achieve Sustainable Business Success.Sustainable means on-going so you need monitoring tools to check your business’s health.DashBoard is our tool to be confident you […]

How to Track progress with Fever Charts

Very often we would benefit from some visual method of alerting us to the fact that some process is becoming critical and needs our attention. One such visual aid is a “fever chart”. 

How to Calculate Time to Produce each Product with Takt Time

Takt is the German word for the baton that an orchestra conductor uses to regulate the tempo of the music. Takt time may be thought of as a measurable beat time, rate time or heartbeat.

Takt time is the average time between the start of production of one unit and the start of production of the next unit, when these production starts are set to match the rate of customer demand.

In Lean, Takt time is the rate at which a finished product needs to be completed in order to meet customer demand.  Blue Belt

How to Improve Cashflow Acceleration

A healthy cashflow is a major contributor to your business’s ability to survive and grow. Do you want to harness the power of your cashflow to grow your business?  Are you struggling to pay bills when they fall due? Speeding up cashflow can help with both these goals. Cashflow Acceleration discusses how you can accelerate your cashflow to improve the health and growth rate of your business. Yellow Belt 

80/20 Principle and the Theory of Constraints

This is 12Faces equivalent of Godzilla meets the Hulk! In our language it is the mixing of the 80/20 Rule, which promises up to 16x growth and the Theory of Constraints (TOC) approach, which describes the most liberating aspect of your production line.

Importance of Performance Analytics for Profit

Analytics and Metrics are the family of measurement tools that a business puts together to provide feedback on its position on whatever factors it chooses to monitor. The most common is Profit and Loss bookkeeping. One of the most sophisticated might be measuring your e-commerce performance with Google Analytics. There is an old saying that “what gets measured, gets done“; referring to the fact that staff who know something is being measured and evaluated, will try to see it goes well.

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